Impacts of photovoltaic distributed generation and energy efficiency measures on the electricity market of three representative Brazilian distribution utilities

Abstract

This paper evaluates the economic (electric power rates and utilities revenues), environmental (GHG emissions), social (job creation) and political (tax collection) impacts of a wider diffusion of photovoltaic distributed generation (PVDG) and energy efficiency (EE) measures on the markets of electric power distribution utilities in Brazil. The impacts are calculated for three substantially different power distribution utilities, which are representative of the types of utilities found in the country. Key indicators were selected to reflect the main interests of the following stakeholders: power distribution utilities, the government (Federal, State and Municipal) and low-voltage consumers. The results show that the most important issues that should be addressed concerning a large diffusion of EE measures are tax collection and tariff rises. The simulations show that tariff rises can be hampered by EE actions targeted to specific locations and specific actions. The most important impact of PVDG diffusion is on tariff rises, considering the current regulatory framework in the country. On the other hand, the net jobs creations of EE measures and, particularly, PVDG are significant and the cost of job creation in relation to fiscal waiver by investment on PVDG is cost-effective. The GHG emissions avoided by the higher levels of PVDG and EE in 2040, simulated in this study, showed to be significant for both EE measures and PVDG.